An Unexpected Lesson About Saving Money

For years, my husband and I relied on Geico to insure our two SUVs. This business relationship lasted close to seven years, and even longer if you count the years that my husband used Geico before we were married. Our confidence in Geico was reinforced by everything from a cute talking Gecko and funny cavemen to a pair of giant eyeballs sitting on top of a heap of money -- all while we jammed to a remix of Rockwell's hit 'Somebody's Watching Me.'

Well, this relationship came to an abrupt end recently, when, during a round of home-budget cuts, we decided to check out auto insurance rates offered by competitors. As a Money Coach, I always tell people to comparison shop and to make sure they're getting the best deal on the products and services for which they're paying. And in this economy, who couldn't stand to save more money? So my husband, Earl, and I routinely review all of our expenses, big and small, and break them into two categories: need to have and like to have. Obviously, the "like to haves" come under the most scrutiny. But sometimes an expense we deem as necessary might still be cut and replaced with a less expensive "need to have."

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Don't Skimp! Better Ways to Save

Don't Skimp on Soft Clothes

But, do skip the fancy fabric softener. That doesn't mean you have to put up with scratchy clothes! Besides being a pain to remember, fabric softener is one of those extra expenses you can cut without sacrificing. You can still get the soft clothes you love by using those plastic nubbed balls they sell for your dryer. Simply toss the balls in with your clothes and they'll do the work of that fabric softener for a lot less money.

Cassandra Hubbart, AOL

BlackVoices.com

Dont Skimp on These Things; Ways to Save Instead

Don't Skimp on Your Car's Maintenance

Car maintenance is NOT something you want to skip as a cost-cutter. All cars need regular maintenance -- an oil change every few thousand miles, a tune-up once or twice a year, etc. -- if you want your car always to be reliable and last as long as possible. One of our radio show listeners didn't change her brake pads and, after a time, ended up with worn down rotors that cost a bundle. Instead, save by cutting out the pricey premium gas. Most cars "recommend" premium, but don't require it, so ... go for the lower or middle grade gas instead of the high grade if your car runs fine without it -- check your owner's manual.

Dont Skimp on These Things; Ways to Save Instead

Don't Skimp on Lipstick

Ladies, don't feel guilty about buying that beautiful new lipstick for Spring next time you are at the department store. Studies show that more expensive lipsticks actually have color that lasts longer because they have more pigment in them. To offset the cost, don't buy the fancy (and expensive) brand-name mascara at your department store. Study after study shows that most mascaras use the same ingredients, so use a less expensive version from your drugstore or Wal-Mart. You'll look great and pocket some savings!

Dont Skimp on These Things; Ways to Save Instead

Don't Skimp on Pet Food

If you love your dog, you won't skimp on their food. Studies show that cheaper food contains more filler -- such as yellow corn, wheat gluten and corn syrup -- that are bad for your pet. Food that is made of natural ingredients might be more expensive per pound, but it can help keep your pet healthy (avoiding those extra vet bills!) and keep them from putting on weight. Plus, you will usually need to feed them a smaller amount of healthier food since they are getting more nutrition and less filler. If you want to cut back on pet costs, skip the toy aisle at the pet store. Is your dog really going to notice if you skip the $15 fancy toys and toss him a good old tennis ball instead?

Dont Skimp on These Things; Ways to Save Instead

Don't Skimp on Brand-Name Toilet Paper

Look, we're as frugal as the next guys ... but let's not take this too far, OK? Bottom line is that brand-name toilet paper is, generally, simply better. Most of the less expensive store-brand products just aren't as soft and have less tissues per roll (which means a much shorter lifespan) so you're paying more "per sheet," if you will. But do save money by using the store brand napkins. All you're paying for is the brand name and the pretty print on the napkins. Store brands work just as well.

Dont Skimp on These Things; Ways to Save Instead

Don't Skimp on Doctor's Visits

No one likes going to the doctor, so it might be extra tempting to skip that check-up because it will save you some money. Don't do it! Your health is not an area you should be skimping. Instead, save money on health care costs by using generic drugs rather than name brands whenever possible and OK'd by your doctor. Numerous studies have shown that, since the active ingredient in many prescription medications are the same, most "name-brand" drugs are no better than their generic counterparts.

Dont Skimp on These Things; Ways to Save Instead

Don't Skimp on Fresh Produce

Speaking of the doctor ... the old saying about "an apple a day keeps the doctor away" still holds true, so don't skimp on buying fresh fruits and vegetables. Yes, fresh fruit and vegetables have become pricey. But, rather than cutting back, use these tips to spend less. You can save on fresh product by visiting your local farmers' market or produce stands, by only buying what's in season and by buying what's on sale when you are at the grocery store.

Dont Skimp on These Things; Ways to Save Instead

Don't Skimp on Organic, Except ...

Unfortunately, organic produce is pricey -- 30-50 more than regular produce. We know lots of people who believe in buying organic produce, but are ready to give it up as an expensive luxury. Rather than give it up altogether, focus your buying on those fruits and veggies where organic matters most. Buy conventional for produce that uses very little pesticide, such as onions, avocado, sweet corn (frozen), pineapples, mango, asparagus, sweet peas (frozen), kiwi and bananas.

Dont Skimp on These Things; Ways to Save Instead

Don't Skimp on Contributing to Your 401(k) or IRA

Cutting contributions to your retirement savings should be one of the very last things that you do. Be sure that you've eliminated all of the unnecessary expenses from your life before you consider this drastic step. This is your future you're messing with! Instead of skimping on your retirement plans, skip that daily Starbucks run instead. Heck, at $3+ a day for a cup of Joe, you'll save $90+ a month or more than $1,000 a year! That one change alone can help tremendously ... and we're sure there are other mostly painless cuts you can make in your life without sacrificing your retirement savings.

Dont Skimp on These Things; Ways to Save Instead

Don't Skimp on Foundation

Listen up ladies ...you might be able to save a few bucks buy using a cheap foundation, but it might add years to your age. More expensive brands tend to have better, longer-lasting pigment. That means you also use less, stretching your dollar and avoiding a thick layer of foundation that can make you look older. Instead, cut your beauty budget by going with cheaper nail polish. Did know that all nail polish basically uses the same ingredients? So choose a less pricey brand without worries.

Dont Skimp on These Things; Ways to Save Instead

Which leads me back to our review of the insurance we pay for month after month. I don't know about you, but we're insured up the wazoo. Life insurance. Health insurance. Homeowners insurance. Car insurance. The list goes on and on. And all these costs add up to thousands of dollars -- per month.

I should add that we're not living high on the hog, nor are we rolling around in fancy sports cars or late-model vehicles. I drive a 2002 Toyota Highlander; Earl drives a 2003 Chevy Tahoe. My car suits me just fine. I haven't had a car payment in over five years, and my Highlander is perfect for shuttling around our three kids. As for Earl, he's secretly lusting after a new Escalade, but that's another story. For now, he's content, too, with his Tahoe.

So after we logged on to the online insurance quote service NetQuote, we got a live response from a representative at a nearby Liberty Mutual office. My husband faxed over a copy of our declaration page from Geico and asked the rep for a competitive quote. Earl told the rep upfront that if the quote was not significantly lower not to bother sending over anything.

Later that day, we received a quote which appeared to be the same as Geico's quote. But upon closer investigation, we realized that Liberty Mutual's annual quote was the same as Geico's quote for just six months of coverage. That worked out to nearly a 50 percent savings on car insurance. After doing a double take, and then triple checking everything, we promptly canceled Geico. And so far we are pleased with Liberty Mutual.

There are at least two lessons to be learned here:

1. Review your rates for services on a routine basis.
2. Don't be afraid to try a new company's services, even if you are already satisfied from the services offered by your current company.

I guess the last thing I learned from this is not to buy into marketing. Just because some company positions itself as the "low cost" leader in a certain category, doesn't mean it really does always offer the best deal.

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Lynnette Khalfani-Cox, an award-winning financial news journalist and former Wall Street Journal reporter for CNBC, has been featured in the Washington Post, USA Today, and the New York Times, as well as magazines ranging from Essence and Redbook to Black Enterprise and Smart Money. Check out her New York Times best seller 'Zero Debt: The Ultimate Guide to Financial Freedom.'